Global Oil Demand Forecast Stronger Than Expected: IEA

PARIS — The International Energy Agency raised its forecast Wednesday for global oil demand this year and next following new data showing stronger-than-expected economic growth, especially in rich developed economies.

The Paris-based energy watchdog says global demand for crude will reach 86.9 million barrels a day this year, up from its forecast last month of 86.6 million barrels a day.

The IEA said in its monthly report that oil demand next year will reach 88.2 million barrels a day, up from its forecast last month of 87.9 million barrels a day, based on the latest economic forecast from the International Monetary Fund earlier this month.

The IEA – the energy arm of the Organization for Economic Cooperation and Development, a grouping of the world's richest nations – said rich world oil demand will rise 0.7 percent this year to 45.8 million barrels a day, while growth in non-OECD countries will rise 4.7 percent to 41.2 million barrels a day.

Next year, rich world oil demand will resume its long-term decline, the IEA said, falling 0.6 percent, while non-OECD demand will continue to rise, growing 3.7 percent.

Comments

[Kenz300]

11:28 AM on 10/17/2010

It is time to transition our economy to clean, sustainable, alternative energy.

Wind, solar, geothermal and biofuels all need our support.

It is time to end the oil monopoly at the pump.

Gas stations need to be multi service stations offering a variety of fuels.

Gas, ethanol, diesel, biodiesel, CNG and electric charging stations all need to be
part of the mix.

Our economic security and national security demand that we diversify our choices
and supplies of energy.

[Red Beans]

01:39 PM on 10/17/2010

That is truly an outstanding goal. How do you propose to accomplish this and in what is the time line? Are you looking to government to create the energy and supply chains to provide the energy? If you are thinking that the private sector should create the energy and supply chain, I wonder why all like minded organizations don't pull their resources together, due the research and produce the product. There is much talk about alternative fuel but no one seems to be doing anything but talk about it.

[Patriot86]

08:22 PM on 10/16/2010

No it is not...Wall Street is buying oil for which they will never take delivery in order to drive up the price...just as in 2008...they got to make obscene profits..since they don't really invest anymore what is left to them?

[Curtis Lund]

03:59 PM on 10/15/2010

The International Energy Agency is a fraud, the same way the totally unregulated offshore Intercontinetal Commodity Exchange ICE is the biggest fraud being perpetrated on the world, a scam 500 times bigger than Madoff did according to Matt Taibbi of Rolling Stone Magazine.

This offshore ICE exchange set up by the scam artists at Goldman Sucks, hated the regulators of the U.S. Commodity Futures Trading Commission CFTC, because they had to follow buy/sell contract regulations, and buy with their own money. The ICE fraudsters don't use any of their own money, they blatantly manipulate oil prices up or down using very high leveraged contracts, never take delivery of the oil, and reap all of the fraudulantly gained profits.

Want proof? While oil hit $147 a barrel back in 2008, worldwide demand for oil had actually fell 5% that year. The only "demand" was investor demand! This is why oil should only be allowed to be traded by actual buyers and users of the oil such as actual oil refiners, and producers.

Water and electricity are classified as utilities, and therefore controlled by regulators who must get voter approval for rate hikes. Why can't we do this with oil?

This recession is being extended by the potential threat that $147 or higher oil could happen again.

[tacevad]

08:39 AM on 10/15/2010

this is their story and they are going to stick to it. Speculators have nothing to do with the high price of oil...yeah right. The price of gas goes up a quarter a gallon and the repubs get another few hundred million in campaign donations..unrelated events.

[GetAbike]

01:29 PM on 10/15/2010

Don't let facts get in the way of your perceptions.
Asia is on the rise, and our Empire is on the decline- a major shift in the center of economic gravity is underway.
The weakening of our currency- Oil priced in dollars must go up.
Oil production is on a plateau- major fields are declining; less oil is being exported, and more oil is being used domestically by the producers themselves.
Fewer new discoveries of oil- oil companies are having to invest in expensive non-conventional oil like tar sand and deep water. Government owned oil companies are not as proactive in exploration.
Given these facts, of course there will be speculation, bubbles, and panic if we don't get our energy act together.

[LeftLeanWing]

06:20 PM on 10/15/2010

Never knew we had an EMPIRE ?

[Plan B Economics]

07:15 AM on 10/15/2010

$83/barrel coming out of the worst recession since the Great Depression. What does that tell you!!!

Interestingly, it takes the New Zealand government to come out with some truth about the next Oil Crisis

http://www.planbeconomics.com/2010/10/15/the-next-oil-crisis/

[vippy]

05:31 AM on 10/15/2010

Another lie. Those who forecast demand just downed their estimate for 2011, while ours went way down to 1989 levels the consumption in China rose but all of a sudden their car sales suffered, too. In order for them to make a case for these unjustified high oil prices they have to write headlines like these yet the market is flooded and Conoco-Phillips and others just rented more supertankers to store their oil. Have you not noticed that they are just itching to up the price to $ 4 again. Have you not noticed that the financial reform bill did not touch on "speculators." The why you can guess. Did you notice our food prices are higher than in Europe who have a higher income per capita?

[RobtBrock]

06:29 PM on 10/14/2010

The United States is going to have to pay bigtime for oil since demand is growing more enormous worldwide for petroleum. It is up to present and future generations to find some suitable alternatives or dig deeper for cash to pay those who provide the fossil resources (Saudi Arabia, Iraq, Iran, Russia etc.).

[guveqzero]

02:08 PM on 10/14/2010

The US government could have fixed this problem. But, it would need more than solar pannels and wind. However, the oil companies are still the obstacle. As long as supply drops and demand rises, record profits are forecasted. No need for the industry, through capitalism, to change.

[QuantProgrammer]

04:58 PM on 10/14/2010

Why not buy into oil companies or wind energy projects? Higher gas prices mean more money for everyone involved in producing this stuff. It also means more investment which ultimately leads to more supply.

[Greene3]

11:32 PM on 10/13/2010

This is truly surprising... and in other news... cro magnons invented this crazy thing very similar to a wheel....

[oilfield]

06:44 PM on 10/13/2010

please transfer to solar power and wind power at once.....put unicorn milk in your car to drive down demand. act now.

[Vegasyankee]

04:45 PM on 10/13/2010

Any questions as to why America needs to continue drilling?

Democrats would be happy with us being thrown back into the stone age.

[Dardedar]

10:26 PM on 10/13/2010

Drill or not, it's irrelevant (and stupid). We have 2% of the world's reserves and use 20% of the world's oil. With more wells than ever our production peaked 35 years ago.

Please (junkies) step away from the Hummer.

[pingme1x]

04:22 PM on 10/13/2010

Gas prices jumped 24 cents in Vermont since first of October. And the demand is coming from where?

[greatalaska]

07:50 PM on 10/13/2010

rest of world.

[AyeChart]

03:59 PM on 10/13/2010

It would be news if "global oil demand is as experts expected!" I note that EXPERTS ARE NEVER CORRECT IN THEIR PREDICTIONS of hurricane seasons, oil demand, unemployment rates, consumer confidence, or ANYTHING OF IMPORTANCE.

We clearly need new experts. The ones we have are ignoramuses.

[hypnotoad72]

01:15 PM on 10/14/2010

Are you an expert? What would you do differently?

One can only calculate prediction based on constants. Not on variables. For obvious reasons. Variables change.

It's no different than what is sold to us by an investor. They say "If, for 20 years, during each year, the value goes up by 7% then you will have $x,xxx,xxx after 20 years." The reality is, especially with "the new normal", fluctuations, money-grabs, shady dealings, et cetera, render any prediction pointless. Nobody wants anyone to read the fine print. Yet people invest anyway...

[guveqzero]

02:11 PM on 10/14/2010

Usually rumors and predictions are used to trade commodities by big money, it's all just a game and nothing related to supply and demand.

[redsoxr4]

02:17 PM on 10/13/2010

drill baby drill!

[tacevad]

08:41 AM on 10/15/2010

spill baby spill

[notdarkyet]

11:36 AM on 10/13/2010

The demand is only going to grow as population and other countries , China, India, increase their industrialization. If we don't develop alternative energy right now, it will be too late. We will end up getting cut off as we get priced in the market. we have always known we don't have the oil resources to meet our demands. We should have learned our lesson in the seventies.